Jai Balaji raises Rs 198.5cr via QIP

Kolkata-based Jai Balaji Industries has raised Rs 198.50 crore through a qualified institutional placement (QIP) issue.

This is the second round of placement, the first being in February 2008 when the company raised close to Rs 273 crore from Citi Venture Capital International and India Equity Partners through private placement of shares.

The investors in this QIP issue are Halbis, GMO, Reliance AMC, New Vernon, JF Investors, UBS GAM, Hammon, IIFL Emerging India Focus Fund Singapore, Kotak AMC and United Bank of India. Aditya Jajodia, managing director, Jai Balaji said, this round of placement of equity shares increased the stake of FII/FDI/FI holding to close to 30 per cent in the company.

The funds would be used for completion of its ductile iron pipe plant and coke oven plant at Durgapur in West Bengal and mines allocated to the company.

The company is also in the process of starting its Purulia plant. Jajodia said, the company had in possession 1,100 acres for its first phase. It had also bagged coal linkages for the project. The total land requirement for the project was 3,600 acres, which would be used for a five million steel plant, three million tonne cement plant and 1,215 MW of captive power.

Financial closure for the first phase would be achieved in the next six months.

Jajodia said, the project would lead to setting up of many ancillary units in the district and would generate direct and indirect employment for 45,000-55,000 people.